Annual Reconciliation of Apportionable Income

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File

Request an Annual Apportionment Reconciliation Filing Extension

 

An extension may be granted if requested before the filing due date of the reconciliation for which the extension is granted.

1. On dor.wa.gov click the Log in button.
2. Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
3. On the My DOR Services page, click Get Started.
4. Click the More Options tab.
5. Click the Send a Message link in the Your Account section.
6. Select the account the message is concerning by clicking the applicable Excise Tax link.
7. Click the This message doesn’t concern a specific period link.
8. Select the Annual Reconciliation of Apportionable Income link from the list.
9. Complete the Subject and Message fields.
10. Click Submit.

File a no change Annual Apportionment Reconciliation

 

1. On dor.wa.gov click the Log in button.
2. Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
3. On the My DOR Services page, click Get Started.
4. In the Excise Tax Account panel, click the More Excise Tax Options link.
5. In the Reconciliations section, click the File Apportionment Reconciliation link.
6. On the Annual Reconciliation Information page, enter the Year to be Reconciled, select the Tax Classification using the drop-down menu, enter the Description of Business Activity, select No for Changes to Report, select Yes or No to indicate if nexus was established sometime during the reconciled calendar year, if applicable enter the Date nexus was established, then click Next.
7. On the Your Contact Information page, enter a Contact Name, and Telephone Number, then click Next.
8. Verify the information on the Summary page, then click Submit.
9. You can print the Confirmation page by clicking Print Confirmation. To print a copy of the Annual Apportionment Reconciliation, click Printable View.
10. Click OK.

File an Annual Apportionment Reconciliation

 

If you have more than one apportionable business activity a separate reconciliation must be filed for each activity. Learn more about apportionment.

Accessing a Reconciliation

1. On dor.wa.gov click the Log in button.
2. Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
3. On the My DOR Services page, click Get Started.
4. In the Excise Tax Account panel, click the More Excise Tax Options link.
5. In the Reconciliations section, click the File Apportionment Reconciliation link.

Annual Reconciliation Information

1. On the Annual Reconciliation Information page, enter the Year to be Reconciled, select the Tax Classification being reconciled using the drop-down menu, enter the Description of Business Activity, select Yes or No to indicate if there are changes to report, select Yes or No to indicate if nexus was established sometime during the reconciled calendar year, and if applicable enter the Date nexus was established.
2. Click Next.

Throw Out Income

1. On the Throw Out Income page, use the radio button to indicate if you have throw out income to report. For information on how to determine your throw out income, please refer to WAC 458-20-19402.
2. Click Next.

Receipts Attribution Method

1. On the Receipt Attribution Method page, use the radio button to select the method used to attribute receipts to Washington and other states. If you select Other, enter an explanation of the method.

• Learn more about attributing service income.
• Learn more about attributing royalty income.
• Learn more about attributing income as a financial institution.

2. Click Next.

• If you selected “I have no throw out income to report.” on the Throw Out Income page, continue to the Calculate Your Receipts Factor section.
• If you selected “I know my throw out income and need to report it.” on the Throw Out Income page, continue to the Calculate Your Receipts Factor section.
• If you selected any other option on the Throw Out Income page, continue to the States where conducting business section.

States where conducting business

1. On the States where conducting business page, select the checkbox for each state where business is being conducted. If applicable, enter each country where business is being conducted.
2. Click Next.

Annual Income by State/Country

1. On the Annual Income by State/Country page, enter the Gross Selling Income, Gross Apportionable Income, and the Apportionable Income for the Tax Classification being Reconciled for each state and country.

• Gross Selling Income is the combination of all your income from any selling activity in each state. For example, retailing or wholesaling related income.
• Gross Apportionable Income is the combination of all your apportionable income. For example, service & other activities, royalties, and travel agent related income.
• Apportionable Income for the Tax Classification being Reconciled is the income for the tax classification you are reconciling. For example, if you are reconciling the Service & Other Activities B&O tax classification, you would only include that income under this column.
• This information is used to determine if you exceed the minimum nexus receipts threshold for substantial nexus in any state. The minimum nexus receipts threshold is exceeded (satisfied) if receipts from apportionable and selling activities attributed and sourced, respectively, to any state totaled more than $100,000 in the current or immediately preceding calendar year. All receipts from all apportionable and selling activities are accumulated to determine if the minimum nexus receipts threshold is satisfied. Receipts from activities other than apportionable and selling activities (e.g., extracting) are not used to determine if the receipts threshold has been satisfied.
• If you do not exceed the minimum nexus receipts threshold for determining substantial nexus in any state, you will need to complete the State/Country Nexus Standards page.

2. Click Next. If you do not exceed the minimum nexus receipts threshold for determining substantial nexus in any state, you will see the State/Country Nexus Standards page. Continue to the State/Country Nexus Standards section. Otherwise, continue to the Calculate Your Receipts Factor section.

State/Country Nexus Standards

1. On the State/Country Nexus Standards page, select the checkbox for each appliable state/country where you have trailing nexus, physical presence, are organized or commercially domiciled, or are subject to business taxes.

• The states/countries where you did not have at least $100,000 in combined selling and apportionable income are listed on this page.
• This information is used to determine if you meet other nexus standards in order to be considered taxable in another state.
• If you do not meet any other nexus standards in another state, you will need to complete the Income Performed in Washington page.

2. Click Next. If you do not meet any other nexus standards in another state, you will see the Income Performed in Washington page. Continue to the Income Performed in Washington section. Otherwise, continue to the Calculate Your Receipts Factor section.

Income Performed in Washington

1. The states/countries where you did not meet other nexus standard are listed on the Income Performed in Washington page. Use the radio button to select Yes or No for each state/country to indicate whether part of the activity related to the income is performed in Washington.
2. Click Next.

Throw Out Income Calculation

1. Verify the information on the Throw Out Income Calculation page.
2. Click Next.

Calculate Your Receipts Factor

1. On the Calculate Your Receipts Factor page, review the calculation of the receipts factor. If you selected “I know my throw out income and need to report it.” on the Throw Out Income page, you will need to enter your Washington Income, Worldwide Income and Throw Out Income to calculate your receipts factor.
2. Click Next.

Estimated Tax Balance

1. On the Estimated Tax Balance page, enter the Worldwide Gross Less Deductions amount for each tax period, and review the calculation of the Total Estimated Tax Balance.

• The Worldwide Gross Less Deductions amount entered should be your worldwide income less any allowable deductions from B&O tax.
• Do not include the Interstate and Foreign Sales deduction in the calculation of the Worldwide Gross Less Deductions amount entered. This deduction is already accounted for in the Receipts Factor calculation.

2. Click Next.

Attachments

1. To add attachments on the Attachments page, click the Add link, enter a Description, click Choose File, select the file, and click OK.

• You are encouraged to upload documentation to substantiate your throw out income if you chose not to fill out the throw out income pages (if you selected “I know my throw out income and need to report it.” on the Throw Out Income page).
• Failure to provide this information may delay the processing of your Reconciliation of Apportionable Income and may result in the Department requesting additional information.

2. Click Next after the attachments have been added.

Your Contact Information

1. On the Your Contact Information page, enter a Contact Name, and Telephone Number.
2. Click Next.

Review

1. On the Review page, verify the information and review the Estimated Tax Balance, Estimated Interest, and Total Estimated Tax Balance amounts.
2. Click Next.

• If you are due a refund, you will see the Credit Balance page. Continue to the Credit Balance section.
• If you owe an additional amount, you will see the Select Payment Type page. Continue to the Select Payment Type section.

Select Payment Type

1. On the Select Payment Type page, select the payment type you wish to use and follow the prompts. More information on payment options.

• Bank Account (ACH Debit) will deduct the payment from the bank account you select on the next page.
• Credit or Debit Card will charge the card you provide on the next page. A 3.25% processing fee is charged by a third party vendor for this service. Enter your email address. Click the Enter Card Information button to be redirected to a third party vendor to complete the transaction.
• Contact your bank to initiate payment (ACH Credit). Learn more.
• Mail a Check will allow you to submit the return and pay by check. Click the Print Voucher button on the Confirmation page, print the voucher, and mail the voucher with your check.
• No Payment will allow you to submit the return without making a payment.

2. Click Next and continue to the Summary section.

Credit Balance

1. On the Credit Balance page, review the information.
2. Click Next.

Summary

1. Verify the information on the Summary page.
2. Click Submit.

Confirmation

1. You can print the Confirmation page by clicking Print Confirmation. To print a copy of the Annual Apportionment Reconciliation, click Printable View. If you have a credit, you can add or update an electronic refund bank account by clicking Add/Update Electronic Refund Account.
2. Click OK.

Continue draft

Submit a previously saved draft of an Annual Apportionment Reconciliation

 

If you saved a draft of a reconciliation, you can come back and file it at a later time.

1. On dor.wa.gov click the Log in button.
2. Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
3. On the My DOR Services page, click Get Started.
4. Click the More Options tab.
5. In the Payments, Returns and Submissions section click View, Edit, or Print Drafts or Submissions.
6. In the Draft tab, click the applicable Reconciliation of Apportionable Income link
7. Click Continue Editing.
8. The reconciliation is now available for you to walk through and make changes. Follow the steps in the File an Annual Apportionment Reconciliation help topic to submit the reconciliation.>

Delete a previously saved draft on an Annual Apportionment Reconciliation

 

If you have already started and saved a draft of a reconciliation, you can delete it at a later time.

1. On dor.wa.gov click the Log in button.
2. Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
3. On the My DOR Services page, click Get Started.
4. Click the More Options tab.
5. In the Payments, Returns and Submissions section click View, Edit, or Print Drafts or Submissions.
6. In the Draft tab, click the applicable Reconciliation of Apportionable Income link.
7. lick the Delete link.
8. Click Yes to confirm you want to delete your saved draft reconciliation.

Already submitted a reconciliation?

Edit and Resubmit an Annual Apportionment Reconciliation

 

You can edit and resubmit your reconciliation the same day it is submitted. If the reconciliation has been processed, follow the steps in the Amend a Processed Annual Apportionment Reconciliation help topic.

1. On dor.wa.gov click the Log in button.
2. Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
3. On the My DOR Services page, click Get Started.
4. Click the More Options tab. 
5. In the Payments, Returns and Submissions section click View, Edit, or Print Drafts or Submissions. 
6. In the Pending tab, click the applicable Reconciliation of Apportionable Income link.
7. Click the Edit & Resubmit link.
8. Click Yes to confirm you want to edit and resubmit your reconciliation.
9. Click OK.

• By selecting Edit & Resubmit, clicking Yes, and clicking OK, you have cancelled your previous reconciliation. It is now a saved draft which you will need to edit and submit.
• Click Continue Editing to edit and submit your saved draft reconciliation.
• The reconciliation is now available for you to walk through and make changes.
• Follow the steps in the File an Annual Apportionment Reconciliation help topic for help completing the reconciliation.

Delete a submitted Annual Apportionment Reconciliation

 

 

You can delete your reconciliation the same day it is submitted. Once the reconciliation has been processed, you will not be able to delete it.

1. On dor.wa.gov click the Log in button.
2. Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
3. On the My DOR Services page, click Get Started.
4. Click the More Options tab. 
5. In the Payments, Returns and Submissions section click View, Edit, or Print Drafts or Submissions. 
6. In the Pending tab, click the applicable Reconciliation of Apportionable Income link.
7. Click the Delete link.
8. Click Yes to confirm you want to delete your submitted reconciliation.

Amend a Processed Annual Apportionment Reconciliation

 

If a reconciliation is filed and processed and needs to be amended, a new reconciliation will need to be filed for the same period and tax classification.

Follow the steps in the File an Annual Apportionment Reconciliation help topic to submit the new reconciliation.

View or Print a Copy of an Annual Apportionment Reconciliation

 

1. On dor.wa.gov click the Log in button.
2. Log in by entering your SAW User ID and Password, then click Log in to My DOR. If asked, complete the Multi-Factor Authentication challenge to verify your identity.
3. On the My DOR Services page, click Get Started.
4. Click the More Options tab. 
5. In the Payments, Returns and Submissions section click View, Edit, or Print Drafts or Submissions. 
6. In the Processed tab, click the applicable Reconciliation of Apportionable Income link.

• If necessary, input an earlier date in the Processed From field and click Search.
• If you do not see the Processed tab, click the applicable Reconciliation of Apportionable Income link in the Pending tab.

7. You can navigate through the Annual Apportionment Reconciliation that you submitted by clicking the Next button or using the links in the progress bar.
8. To print a summary of the reconciliation, click Print at the top of the page and use your browser menu to either print or save as a PDF.